Looking out the JR Yamanote Line windows as it circles Tokyo, one cannot help but notice all the construction projects being completed in preparation for the big events of 2020. The biggest city in the world, Tokyo is quickly renovating, improving and constructing office and commercial buildings, international hotels, convention centers and expanding public transportation.
Over the next 5 years, this massive makeover is slated to include prominent developments, such as the 2020 opening of Shibuya high rises and a new 13ha station added to the Yamanote Line between Shinagawa and Tamachi Station. Major neighborhoods such as Tokyo, Ginza, Ikebukuro, and Shinjuku are all being refurbished for the future.
Already a global city in many regards, Tokyo continues to welcome people from around the world strengthening globalization. While 2015 saw an impressive 8,870,000 tourists, Tokyo seeks to double that figure over the next decade - 15,000,000 tourists in 2020 and 18,000,000 in 2024.
Information centers for overseas visitors are being set up in popular destinations such as Akihabara, Asakusa, Ginza, Roppongi, and Shibuya.
Tokyo also continues to enjoy growth as Asia’s business hub. Planning is underway for an Asian Headquarters Special District along with a National Strategic District. Both will assist in the smooth integration of foreign companies’ regional businesses and research development efforts. Roll and size of business in Tokyo is expanding.
As for condominium prices, the market prices in Tokyo are relatively low when compared with other major Asian cities. By way of example, a unit in the upscale Tokyo neighborhood of Moto-Azabujuban Minato-ward costing 100 would be 151.3 in Shanghai, 144.1 in Singapore, 165.7 in Taipei and 234.9 in Hong Kong (April 2015 comparative research by the Japan Real Estate Institute).
It is no wonder then that the Japanese condominium market continues to attract the attention of foreign investors. New luxury condominiums in the upscale neighborhoods of the “3A” – Akasaka, Aoyama and Azabu - are selling very well. The price of second hand condominiums in Tokyo is also on the rise.
On July 17, 2015, the Japanese government announced it would be discarding its original National Stadium plans due to rising material costs. There is some speculation that similar increases might impact condominium prices by as early as next year.
Meanwhile, Tokyo's vibrant history and infrastructure remains a fundamental part of its identity. The magnificent Tokyo Station, built in 1914 and surrounded by the Marunouchi and Yaesu business districts, has long played host to many VIPs from around the globe, recently renovated and having just celebrated its 101st birthday. Tokyo’s continuous effort in honoring tradition and making history is perhaps the reason for becoming one of the largest city in the world.
In this time of transition, it is easy to see why condominiums in Tokyo is gaining attention. The prices are said to be relatively reasonable compared to that of the world. We therefore encourage you to be a part of this dynamism. Now is the time to invest.
* Our multinational team accepts both written and spoken queries in English and provides language support for speakers of Mandarin and Bahasa Malaysia.
Each of us investment team members are expert professionals at property investment advisory, with an acquired know-how of Japanese property investment. We are more than happy to support you by helping you develop your ideas about the properties in the pursuit of your goals. Also, our multinational team welcomes any inquires in English and can provide additional support for speakers of Mandarin and Bahasa Melayu.